A.Bradley Hill
Executive Vice President and Chief Investment Officer at Mid-America Apartment Communities
Thank you, Tim, and good morning, everyone. Despite the challenges in the transaction market, the team continues to make good progress in executing our disposition plan for the year. In addition to the two Fort Worth properties we sold in the second quarter, we closed on the sale of a 396 unit community in Maryland earlier this month. We have one more disposition property located in the Austin market that we expect to close in the fourth quarter. Total expected proceeds for all four disposition remains at the midpoint of our guidance of $325 million with an NOI yield of 4.3%, generating a total expected IRR for these 25-year-old assets of 17.8%. The slowdown in transaction volume that started in the second quarter continued in the third quarter as dislocation in the capital markets increased over the quarter.
Most buyers remain on the sidelines and with only a limited number of properties coming to market, price discovery will take some time. However, as we've seen in previous cycles, when deals begin to come to market, the evaluation of counter-party risks will drive decisions, with buyer financial strength and speed of execution being attractive key differentiators. During the third quarter, we were able to opportunistically use those strengths to close on two compelling newly constructed properties for a total of $213 million, generating an initial stabilized NOI yield of 4.7%, which we expect to increase further through our operating platform capabilities.
These investments not only provide a higher immediate NOI yield than what we are selling, but they also give us more scale and higher demand, higher growth markets, where we expect to generate higher organic growth over the long term, especially on an after-capex basis. Due to their locations near other MAA communities, both investments also provide additional margin expansion opportunities that we will fully harvest over the next few years. We continue to make progress in building out our development pipeline, while our under-construction pipeline remained at $444 million at the end of the third quarter.
Earlier this month, we started construction on a $197 million, 495-unit project in Tampa, bringing our total active under-construction projects today to $641 million, representing 2,254 units. Predevelopment work is nearly complete on our Raleigh project, and we expect to start construction this quarter. With the scheduled completion of our Windmill Hill property in Austin, during the fourth quarter, we expect to end 2022 with approximately 2,310 units under construction at a total cost of $723 million. Also during the third quarter, we purchased a land parcel for a potential late 2023 start of a 500-unit development in the Denver, MSA.
We now own seven and control five development sites with total entitlements in place for approximately 3,700 units. As we've indicated in previous quarters, the timing of planned construction starts can change as we work through the local approval and the construction bidding processes, but we are hopeful we can start a number of these projects over the next 18 months. Having said that, our balance sheet strength gives us the option to be patient and our construction timing, if it's warrant. Our disciplined approach to asset allocation, including site selection and land valuation will continue to be an integral part of our capital deployment decision process.
Our construction management team continues to do a tremendous job actively managing our projects and working with our contractors to keep the inflationary pressure surrounding labor and material costs from causing a meaningful increase to our overall development costs or our schedules to help mitigate some of the potential cost escalation and schedule expansion that is prevalent in the market today, we are working with our contractors to make commitments to purchase materials much earlier in the process. Today, our biggest challenges involve securing labor, obtaining cabinets and electrical components and securing building permits.
Our team has been able to work around these issues on the majority of our projects to stay on schedule. In line with the performance of our overall portfolio, operating performance at our development communities in their initial lease-up is strong, with results at each community well ahead of our pro forma expectations. Demand remains strong and the competition from other new supply is not impacting our lease-up performance. During the third quarter, our Jefferson Sand Lake Community in Orlando reached stabilization and due predominantly to the strong rent performance, we expect our stabilized NOI yield to be between 7.8% and 8%, exceeding our original expectation by over 25%. That's all I have in the way of prepared comments.
So I'll turn it over to Al.